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While that might be a better barometer of how we adjust to higher prices and lower wages, it isn't so generous to retirees.
WSJ: Refiguring Inflation With 'Chained CPI' Will Hit Retirees' Income
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This allows wages and prices to adjust downward, giving depressed regions a competitive advantage that can attract new companies and thus smooth out regional disparities.
ECONOMIST: Can this union be saved?
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Instead, domestic wages and prices must adjust.
ECONOMIST: The ABC of a currency board
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Wages and prices have to adjust to something like their pre-bubble trends, Mr. Connolly says, to make these economies competitive again.
WSJ: The Weekend Interview with Bernard Connolly: Why the Euro Crisis Isn't Over
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John Maynard Keynes explained how a sudden drop in investment could lead to a long-lived slump, because prices, wages and interest rates would not adjust enough to encourage fresh spending.
ECONOMIST: The credit crunch
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Wages are flat and falling when you adjust them for inflation properly.
FORBES: GDP, Job Growth Fail To Match Rosy Fed Outlook
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For the record, we at TrimTabs track daily Treasury collections of withheld income and employment taxes and adjust for changes in tax rates to estimate real time wages and salaries.
FORBES: Why Stock Prices Should Keep Rising Despite Slowing Wage Growth
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It would oblige Argentina to continue trying to adjust its real exchange rate by deflation (cutting nominal wages and prices in nominal terms), a process which has already forced the collapse of many businesses.
ECONOMIST: Struggling on | The
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In theory businesses and workers should quickly adjust to a deflationary shock, by slashing their prices and wages.
ECONOMIST: Central banks and the bullion price